The Distinction Between Discretionary Fiscal Policy and the Use of Automatic

question 145

Multiple Choice

The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:

• A)only discretionary fiscal policy can stimulate the economy.
• B)only automatic stabilizers can stimulate the economy.
• C)discretionary fiscal policy,once adopted,is built into the structure of the economy.
• D)automatic stabilizers,once adopted,are built into the structure of the economy.
• E)only discretionary fiscal policy can be used by the federal government.

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Definitions:

Psychological Science

The study of mind, brain, and behavior through the systematic observation and experimentation.

Presidents

The elected heads of state in republican forms of government.

Experimental Studies

Research methods involving the manipulation of one variable to determine its effect on another variable in a controlled environment.

Wilhelm Wundt

Often regarded as the father of modern psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879, emphasizing experimental methods.